A normal view of the workplace constructing of Baidu is in Pudong, Shanghai, on Feb. 9, 2026.
Ying Tang | Nurphoto | Getty Photographs
The Pentagon added a slew of Chinese language corporations, together with Alibaba Group, Baidu Inc and carmaker BYD, to an inventory of entities it believes have aided the Chinese language army, complicating the delicate diplomatic relationship between Washington and Beijing.
The Protection Division printed an up to date “1260H checklist” Monday night stateside — a roster of corporations the Pentagon considers affiliated with China’s army or protection industrial base.
The designations don’t impose sanctions explicitly, however imply the Protection Division will likely be prohibited from contracting immediately with listed corporations beginning later this month, and from procuring their services or products via third events starting in June 2027.
“These oblique restrictions might drive some U.S. corporations that work with the U.S. army to drop designated Chinese language corporations as suppliers,” mentioned Michael Hirson, head of China Analysis at 22V Analysis.
Baidu’s American depositary receipts dropped 2.1%, Alibaba slumped 0.8% and BYD slid 0.8%.
The additions come after President Donald Trump met Chinese language chief Xi Jinping in Beijing final month, the place the 2 leaders agreed to a commerce truce and introduced a joint funding and commerce board. The replace underscores a recurring rigidity within the bilateral relationship and safety issues in Washington over Chinese language expertise as a strategic risk.
China will take needed measures to guard Chinese language corporations’ reputable rights and advantages, a spokesperson for Overseas Ministry mentioned Tuesday, criticizing the U.S. for drawing up numerous discriminatory lists concentrating on Chinese language corporations below the pretext of nationwide safety.
The Pentagon briefly posted an identical expanded checklist in February, then withdrew it with out clarification as Trump’s China journey had been pending. The model launched Monday largely mirrors that February replace, however reinstates Chinese language reminiscence chipmakers CXMT and YMTC, which had been left off the withdrawn checklist — an omission that drew criticism from China hawks in Washington on the time.
Listed corporations are deemed affiliated with China’s State-owned Property Supervision and Administration Fee, and designated as “military-civil fusion” contributors to China’s protection industrial base via ties to the Ministry of Business and Info Expertise, in line with the Protection Division discover.
The checklist additionally provides biotech big WuXi AppTec, lidar producer RoboSense Expertise and Unitree, a number one producer of humanoid robots. U.S. chipmaker Nvidia introduced final week its plans to work with the corporate to develop robots for analysis use.
The breadth of the additions displays Washington’s view that civilian expertise corporations in China are inextricably linked to state army priorities, underscoring a priority that has pushed restrictions on China’s semiconductors, synthetic intelligence {hardware} and superior manufacturing from Washington.
Whereas the transfer is basically symbolic as they fall wanting an funding or export blacklist, it reveals how broadly Washington has drawn the road round delicate Chinese language expertise, spanning shopper electronics, biotech and robotics, mentioned Hirson.
Nonetheless, Hirson mentioned he didn’t anticipate the U.S. Treasury or Commerce so as to add distinguished Chinese language tech corporations to extra formal restrictions this 12 months, as Washington prioritizes maintaining the bilateral ties on steady footing.
WuXi AppTec, Alibaba and Baidu disputed the designation and pledged to hunt their removing. BYD did not reply to requests for remark.
“There is not any foundation to conclude that Alibaba ought to be positioned on the Part 1260H Checklist. Alibaba isn’t a Chinese language army firm nor a part of any military-civil fusion technique. We are going to take all obtainable authorized motion in opposition to makes an attempt to misrepresent our firm,” the corporate mentioned in a press release to CNBC.
Baidu additionally rejected the declare, saying that it will “not hesitate to make use of all choices obtainable to us to have the corporate faraway from the checklist.”
Electrical car maker NIO, among the many corporations added to the Pentagon’s checklist, mentioned Tuesday that the next procurement restrictions won’t influence the corporate enterprise whereas vowing to “proactively” have interaction with the U.S. protection division to “right this inclusion” on the Chinese language army firm checklist.
Some Chinese language corporations have sued the Pentagon to contest the itemizing, with Xiaomi profitable a court docket problem that resulted in its removing in Might 2021.
The expanded checklist underscores “how nationwide safety issues are more and more shaping financial coverage” in Washington, Han Shen Lin, China nation director at Asia Group, advised CNBC’s “The China Connection” on Tuesday.
“At the same time as Washington and Beijing search stability, there are nonetheless bipartisan issues within the U.S. about China’s technological and army use, and that is giving rise to more durable insurance policies throughout a number of sectors,” Lin added, urging enterprise executives to weigh geopolitics in funding and company planning.
